- “Token Taxonomy Act” seek to have cryptocurrencies exempted from the Securities Act of 1933.
- The new bill “digital tokens” are referred to as “digital units created…in response to the verification.
There is a bill that has been drafted by a couple of members of the United Stated House of Representatives. The two members, Warrant Davidson and Darren Soto in the “Token Taxonomy Act” seek to have cryptocurrencies exempted from the Securities Act of 1933 as well as the Securities Exchange Act of 1934.
This development comes in the wake of a roundtable in Washington D.C that was working to see proper regulatory measures put together for the rapidly growing industry. The bill states that “digital tokens” should not be defined in the same category as securities hence warranting the amendment of the above mentioned Acts.
In the new bill “digital tokens” are referred to as “digital units created…in response to the verification or collection of proposed transactions.” In addition to that, the bill states that a “digital token:”
“…has a transaction history that…is recorded in a distributed, digital ledger or digital data structure in which consensus is achieved through a mathematically verifiable process; and…after consensus is reached, cannot be materially altered by a single person or group of persons under common control…is capable of being traded or transferred between persons without an intermediate custodian…”
Another section of the bill states that:
“This bill provides the certainty American markets need to compete with Singapore, Switzerland, and others who are aggressively growing their blockchain economies,” Davidson said in a statement. “To be certain, there will be other regulatory initiatives at some point, but this legislation is an essential first step to keeping this market alive in the United States.”
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